Office values rise as jobs fill towers

Australian prime grade CBD office values have increased by 34 per cent over the past three years, while secondary grade commercial property has performed even more strongly, with a 41 per cent increase. In Sydney’s and Melbourne’s core markets, values have risen by 61 per cent for prime office property and 74 per cent for secondary.

Yield compression has been the key factor driving values up, with a drop of 129 basis points in Sydney over the three-year period.

The growth surge of white-collar jobs has, in turn, given way to strong tenant demand. This, along with the expanding tenant base has resulted in unprecedented occupier demand in Sydney and Melbourne and near record low vacancy rates in key CBD and metro markets.

Image source: Louise Kennerley

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Ray White’s top 10 listings for April: (Click on address to view listing)

Suite 301 & 302, 309 George Street Sydney

Level 2, 1 Barrack Street Sydney

Whole Level 4, 136 Chalmers Street Surry Hills

Suite 7.04, 60 Park Street Sydney

Part Level 12, 88 Phillip Street Sydney

Suite 25.05, 31 Market Street Sydney

Suite 903, 46 Market Street Sydney

Suite 7.02, 62 Pitt Street Sydney

Part Level 15, 175 Liverpool Street Sydney

Part 39, 161 Castlereagh Street Sydney